Saturday, April 4, 1998 | 4:03 a.m.
Now that electric companies no longer have a monopoly, are California's 9.9 million customers excited about switching to other energy companies? The answer, so far, is a huge yawn. The San Francisco Chronicle reported that very few residential customers -- only about 17,000 -- have asked to switch. Meanwhile, there also has been confusion in California, as computer glitches caused delays in starting competition and consumers complained they couldn't make sense of their new electricity bills.
On the positive side in California, all electric customers on Jan. 1 were given a 10 percent reduction in their electric bills. But Nevada's law does not guarantee lower rates -- it only says electric rates can't be raised for two years after competition has arrived. Nevada Consumer Advocate Fred Schmidt fears that energy providers may only seek large customers, and that there will be little or no competition for residential customers.
But if there aren't benefits for the smaller customers, they should be helped in the transition. Schmidt suggests the state consider a rate cap for all customers during the transition period to competition. Once competition begins, Schmidt feels the rate cap should last longer than the two years currently written into law.
"I'm trying to keep the pressure on the (Public Utilities) Commission and the Legislature to not forget about the little guy as we go into competition," Schmidt said. Schmidt, who describes himself on this issue as a "voice of caution," should be listened to by both the Legislature and the PUC.
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